VBank, Nigeria’s digital bank managed by VFD Microfinance Bank and ARTSPLIT, an art trading technology company have launched their new Art Based Loan (ABL) offering.
This innovative financing solution is intended to empower art collectors, galleries, and dealers by allowing them to access capital for a variety of purposes by leveraging the value of their artwork.
VBank’s Art Based Loans provide a unique opportunity for art enthusiasts and businesses to maximize the value of their art collections without having to sell valuable assets.
This financial product allows borrowers to keep ownership of their artwork while obtaining a loan backed by the appraised value of the artwork.
VBank will offer the loan facility at 30 percent per annum with loan limits of N12 million and N60 million for individuals and corporates, respectively, ARTSPLIT will validate provenance, value the artwork and guarantee the loan at 3 percent fees, custodian fee of 0.5 percent and additional 1percent insurance charge.
“We are thrilled to introduce our Art Based Loan offering, which bridges the gap between art and finance,” said Gbenga Omolokun, CEO of VBank.
He further said, “Our ground-breaking solution enables art collectors and businesses to maximize the value of their art assets while maintaining ownership and control. We are confident that with ARTSPLIT & AAM’s expertise and customized financing options, we can help our clients thrive in the dynamic art market.”
This first-of-its-kind offering has several advantages, including Flexible Financing: Borrowers can obtain loans based on a percentage of the appraised value of their artwork, giving them the flexibility to access capital; Tailored Loan Terms: Each loan is individually structured to meet the borrower’s unique needs; Preserved Ownership: Borrowers retain ownership of their artwork throughout the loan, and Diverse Use of Funds: Loan proceeds can be used for a variety of purposes, including the acquisition of new artwork, the expansion of art businesses, the support of exhibitions, and the meeting of short-term liquidity needs.
